14th August 2018

Three months after its IT upgrade issues, TSB finally offers remortgages

It has been reported that TSB will now, finally be able to offer its customers the option to remortgage, almost three months later than planned after its ill-fated IT upgrade.

The news suggests that TSB is finally getting back to normal after its move to a new IT system in April left hundreds of thousands of customers unable to access their accounts and caused problems across its branch network.

The FT quoted the bank as saying it would make sure no customers were left worse off, after some had raised concerns that the delay could cost them hundreds of pounds in higher interest payments.

Interest rates on fixed-term mortgages have risen steadily this year in expectation of last week’s Bank of England (BoE) rate rise, and BoE data showed a surge in remortgaging activity ahead of the decision.

However, said the FT, TSB has not been able to offer remortgaging to existing customers since 28th March — almost a month before the disastrous IT upgrade. The system was due to be down for about six weeks, but the delay was extended as the bank prioritised fixing the major problems with its online banking services.

TSB said some customers had already agreed new mortgage terms, to come into effect after its operations were fully restored. But on 10th August the bank said that anyone who could show they had attempted to get in contact during the problems would be able to remortgage at the interest rates they would have received before rates rose.